2. COMPANY PROFILE
Industry: Retail
Type: Supermarket
Chairman & Managing Director: Mukesh Ambani
First Outlet: Hyderabad( Banjara Hills)
Founded: 30th October 2006
Headquarter: Mumbai
3. Product Range
Vegetables and Fruits:
Household items
Food and Beverages- all private labelled and
premiere brands.
Groceries –only private labelled items
Dairy products
Refrigerated products
Non-Food items
4. Positioning
Reliance has positioned itself as a
convenience store or neighbourhood store.
It is also related itself with freshness in the
customers mind.
5. • Generally located in small commercial
complexes close to 3-4 big residential areas
• Observation: found close to ‘Crossroads’
• Enjoy a clear view from the road
5
Reliance Fresh : Place
6. The main idea behind every effort is to make a
bulk purchase
Saturday and Sunday are considered as discount
and scheme day.
Rebates and Premiums focusing on bill value
Audio visual tools been employed
6
Reliance Fresh : Promotion
7. Product Mix consists of Fresh Fruits,
Vegetables, Dairy products, Frozen Items,
Groceries, cosmetics and Daily Use products.
Less Assortment but focus on specific product
categories like vegetables, dairy products,
detergents, fruits and daily use items
7
Reliance Fresh : Products
8. • The pure foods convenience store model of Reliance
Fresh requires far less space than a full-fledged
supermarket
• Most of these outlets need around only 2,000-5,000 sq.
ft
• Simple, colorful but cramped
• Separate entry and exit point
• Chocolates and other kids items were nearby cash
counter
• Vegetables and Fruits items were in display near entry
gate
8
Reliance Fresh : Presentation
10. Low prized Private labels
Discount on bulk buying
Measures taken to reduce the length of Supply
Chain thereby purchase directly from farmers,
which is in turn sent to distribution centre.
Two times supply of vegetable and fruits daily
to ensure “fresh”
10
Reliance Fresh : Pricing
11. • 2 shift staff for small stores and 3 shift staff for
larger ones
• 5 to 6 sales persons per shift
• Staff uniform: red, green and blue
• 1 week training given to staff
11
Reliance Fresh : Personnel
13. • Reliance Fresh’s shelves provide an indication that
the group is looking for higher margins. Most of
the staples are under its own private label brand —
‘ Reliance Select’.
• Excepting a few packets of Nestlé's Maggi, or
MTR’s masalas or Pepsi’s Lays chips, there is very
little shelf space given to the big brand owners in
the country.
• Reason: Private labels offer far better profit margin
to the retailer than branded products of FMCG
companies.
13
Reliance Fresh : Private labels
14. STATEGY
Highlights the saving
Affordable brands
Wide Range to
choose from
BRANDS
GLEN Cooktops-GL 1046 PLCB
INALSA Cooktop 2 Burner –Harmony
PREETHI GAS STOVE DUAL FLAME
GS610
16. Sales Promotion:
The main idea behind every effort is to make a bulk purchase.
Saturday and Sunday are considered as discount and scheme
day.
Two types of offer:
1. BOGO (Buy one get one free)
2. BXGY (Buy X product get Y product free)
Rebates and Premiums focusing on bill value.
Auto material inside the store including the latest promotions
& offers.
Point of Purchase displays are used at reliance fresh to
communicate the benefits of a product.
Festive season special offers.
Live announcement & Spot discount.
17. Cont….
Reliance Fresh Membership Cards.
Social events & store tour.
Providing gifts- free goods.
What Reliance Fresh is doing?
To increase sales volume:
Concentrate on Visual Merchandising.
New concept of promotional strategy.
One to One Marketing.
Direct & long term relationship with farmers and manufacturers.
Providing concessional long term loans to farmers.
21. Swot analysis
Private label sale – own products
(Reliance Select)
Contract Farming
Network – 1600 channels in villages
Poor inventory control
Staff – Lack of knowledge
about products
Parking
Farm to fork, No middlemen,
Farmers – Customer
Hundreds of farmers – 1
million farmers – next five
years
International Retail Giants:
Carrefour, Metro AG, Tesco.
Bharti – Wallmart (Farm to
Fork)
Operating cost are too high
SWOT
22. COMPETITORS
MORE
Total Mall
Spencers Daily
Namdhari Fresh
Food World
Nilgiris
Auchan
Spar Hypermarket
Hyper City
23. Benefits
1.All under one roof
2.Wide range to choose
from
3.Information regarding
various offers
4.Loyalty programs and
benefits
1. Increased Footfall
2. Increase in sales
3. Ability to manage
merchandise based
on customer
information
Customers COMPANY
24. Future plans:
Plans to invest Rs 25000 Crore in next 4 year in their
retail division
Train students and housewives – Customer care &
Quality service – Part time job
Every Indian Consumer
New format of food and café – Reliance food
Private label sale – Kirana store
Pharmacy retail store
6000 outlets – 784 cities
Launch soaps, detergents, cosmetics and non FMCG
products – Private label